Health Plans Kaiser Permanente Washington

A group health insurance plan is a health insurance plan that provides coverage to members of a group that tends to be employees of a company or members of an organization. Members of the group usually receive insurance at a reduced cost because the insurers risk is spread across a group of policyholders.

Group Health Plan - HealthCaregov Glossary

With group health products, employers pay premiums to PHP for coverage of benefits outlined in a contract, and PHP then pays the healthcare claims based upon this contract. The financial risk is transferred to PHP, and an employer can rely on a set monthly premium.